The South Australian government has put $2 million behind what it claims is the country's largest incubator for the games development industry.

Games Plus, a not-for-profit company which had an existing co-working space for games developers in Canberra, was lured to set up an 180-desk space on Pirie St in the Adelaide CBD by the city's one gigabyte per second internet network, which was switched on in July, as well as the support from the Weatherill government.

Games Plus co-founder Amit Oberoi said Adelaide's tight-knit gaming community would benefit from being housed together on a floor of a CBD building.

"The gaming industry isn't a zero-sum game, so it's better to put everyone together to minimise the expense of learning," he said.

His co-founder, David De Margheriti, said further grants being offered by the government would help expand the gaming studios which became tenants at Games Plus from medium to large companies quickly.

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Understanding the vision

"Massive props to the South Australian government for identifying the potential and understanding the vision of the game developers," he said.

"It will bring more jobs and more local industry to the state."

The $2 million government grant will be split in an attempt to maximise returns, with $1.3 million earmarked for the production and marketing of Adelaide-made digital games, and $200,000 allocated to education programs for games developers. The remaining $450,000 will be spent on the fitout of the 1000 square metre Games Plus hub.

Mr Oberoi said he hoped to have at least 12 studios signed up for the co-working space in time for its official launch in the "next few weeks".

He said Games Plus had already secured tenancy agreements with six studios, including anchor tenant Mighty Kingdom, best known for its Shopkins: Welcome to Shopville game which in 2015 hit the top 10 charts in the iTunes and Google Play app stores in the United States, Australia and the United Kingdom.

Mighty Kingdom will move its 35 employees from its existing premises on Rundle Mall to one of the three offices in the new hub.

The games developer's founder and director Phil Mayes said the hub was a chance for South Australia to develop a "new economy" industry in the wake of the traditional car manufacturing industry exiting the city.

"This game development hub in Adelaide will serve as a focal point for local industry collaboration and investment, creating jobs," Mr Mays said.

More competitive

Mr Oberoi said clustering technical artists, programmers and producers together would make all the companies more competitive because they could learn from each other and bring their games to market more quickly.

"We want to become a national network for digital entrepreneurs to co-locate, and share resources, knowledge and opportunities," he said.

Mr Oberoi said although the hub would focus on gaming companies, these businesses traditionally worked on products other than games, such as simulators for the defence industry.

South Australia Minister for Employment Kyam Maher hoped to convince digital games makers that Adelaide was the best place in the country to set up shop.

"By establishing the games hub here in the city, we're sending a clear message to this multibillion-dollar global industry that we are open for business," he said.

Mr De Margheriti claimed gaming hubs in other countries had returned $7 for every dollar spent by the government.